Frequency Electronics Inc (FEIM) 2025 Q4 法說會逐字稿

Greetings, and welcome to the Frequency Electronics Fiscal Year End 2025 earnings release conference call. (Operator Instructions)

您好，歡迎參加頻率電子 2025 財年收益發布電話會議。（操作員指示）

As a reminder, this conference is being recorded. Any statements made by the company during this conference call regarding the future constitute forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements inherently involve uncertainties that could cause actual results to differ materially from the forward-looking statements.

提醒一下，本次會議正在錄製中。根據 1995 年《私人證券訴訟改革法》的安全港條款，本公司在本次電話會議中做出的任何有關未來的聲明均構成前瞻性聲明。此類陳述本身涉及不確定性，可能導致實際結果與前瞻性陳述有重大差異。

Factors that would cause or contribute to such differences are included in the company's press releases and are further detailed in the company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the company undertakes no obligation to update these statements for revisions or changes after the date of this conference call.

可能導致或促成此類差異的因素已包含在公司的新聞稿中，並在公司向美國證券交易委員會提交的定期報告中進行了詳細說明。透過做出這些前瞻性陳述，本公司不承擔在本次電話會議日期之後更新這些陳述以進行修訂或更改的義務。

It is now my pleasure to introduce your host, Thomas McClelland. President and Chief Executive Officer.

現在我很高興介紹您的主持人托馬斯·麥克萊蘭。總裁兼執行長。

Good afternoon, everyone. The fiscal fourth quarter, we just reported was the highest revenue order for the company in the past 25 years, and I'd like to provide some additional context on that. We've demonstrated strong growth over the past several years, and we believe the growth potential for our company is expanding even further for reasons I'll get into shortly.

大家下午好。我們剛剛報告的第四財季是該公司 25 年來收入最高的季度，我想提供一些額外的背景資訊。我們在過去幾年中表現出強勁的成長勢頭，我們相信公司的成長潛力還在進一步擴大，我稍後會詳細說明其中的原因。

While we do not provide guidance given the lumpiness of contract awards, I would be remiss if I did not mention that this recently ended quarter, benefited from strong execution that allowed the company to produce revenue on certain programs in fiscal year '25 that we originally expected to produce over a more extended period of time in fiscal year '25, '26 and beyond.

雖然由於合約授予的不穩定性，我們無法提供指導，但如果我不提及，最近結束的這個季度受益於強有力的執行，那我就是失職了，這使得公司能夠在 25 財年從某些項目上產生收入，而我們最初預計這些收入將在 25、26 財年及以後的更長時間內產生。

In other words, while the trend here is very much an upward one. I do not think it's prudent to expect every quarter in the near term to look exactly like this from a top line perspective. Though in the medium term, it is directionally where we're headed.

換句話說，這裡的趨勢是上升的。我認為，從營收角度來看，期望近期每季都出現完全一樣的業績是不明智的。但從中期來看，這是我們前進的方向。

It's important to keep in mind that the allocations for space and defense-related programs from the recently passed legislation in Congress are very positive for the direction the company is going. But as the bill just passed last week, additional revenue from those contract awards will flow in over the coming quarters and years as our customers now submit bids for increased available funds.

重要的是要記住，國會最近通過的立法對太空和國防相關項目的分配對於公司的發展方向非常有利。但正如上週剛通過的法案一樣，隨著我們的客戶現在提交增加可用資金的投標，這些合約授予的額外收入將在未來幾季和幾年內流入。

Critically, as we position the company to take advantage of all the opportunities we've discussed before and others, I'll discuss in a moment. We're also expanding our customer base beyond the traditional prime contractors. We maintain excellent relationships with the traditional primes and are working on numerous projects with them and anticipate meaningful growth with them going forward. But we've also already been actively submitting bids alongside next-generation defense companies, which are increasingly getting attention in this administration. We believe this positions FEI extremely well to benefit from industry trends we see playing out over the next 5 to 10-plus years.

至關重要的是，當我們定位公司以利用我們之前討論過的所有機會以及其他機會時，我稍後會討論。我們也正在擴大客戶群，使其不再局限於傳統的總承包商。我們與傳統主要企業保持著良好的關係，並與他們合作了許多項目，並期待未來與他們實現有意義的成長。但我們也已經與下一代國防公司一起積極提交投標，這些公司在本屆政府中越來越受到關注。我們相信，這將使 FEI 處於非常有利的地位，從我們預見的未來 5 到 10 多年的行業趨勢中獲益。

Some of the opportunities that will further accelerate our growth are Golden Dome were already involved in several key missile programs and anticipate additional opportunities both for terrestrial and space applications.

一些將進一步加速我們成長的機會是，金色穹頂已經參與了幾個關鍵的飛彈計劃，並預計在地面和太空應用方面會有更多機會。

APMT which is alternate position navigation and timing, the vulnerability of GPS is well documented at this point as stories of damning and spoofing, especially in the Mid East and Eastern Europe corroborate. FEI's Quantum magnetometer development representing an unjammable approach to navigation is part of a particularly relevant solution. Our small but very high-performance Rubidium atomic clock, which we've dubbed Turbo for timing units rubidium oscillator is a key ingredient in other proposed alternate navigation approaches.

APMT 是交替位置導航和計時技術，GPS 的脆弱性在這一點上已得到充分證明，尤其是在中東和東歐的譴責和欺騙故事證實了這一點。FEI 的量子磁力儀開發代表了一種不受干擾的導航方法，是特別相關的解決方案的一部分。我們的小型但性能非常高的銣原子鐘，我們稱之為 Turbo，用於計時單元銣振盪器，它是其他提議的替代導航方法的關鍵因素。

Another important item is GPS enhancements such as resilient GPS, augmenting GPS satellites with a large number of lower-cost satellites. Quantum sensing, FEI is well positioned to succeed in the growing quantum sensor market based on our expertise in atomic clocks. We're currently developing solid state diamond-based quantum magnetic sensor devices in collaboration with MIT Lincoln Labs. Similarly, we're collaborating with scientists at Mist to develop Rydberg sensors, allowing for extremely compact microwave antennas.

另一個重要項目是 GPS 增強功能，例如彈性 GPS，使用大量低成本衛星增強 GPS 衛星。量子感測，FEI 憑藉在原子鐘方面的專業知識，在不斷增長的量子感測器市場中佔據有利地位，能夠取得成功。我們目前正在與麻省理工學院林肯實驗室合作開發基於固態鑽石的量子磁性感測器設備。同樣，我們正在與 Mist 的科學家合作開發里德伯感測器，以實現極其緊湊的微波天線。

Last year, FEI sponsored a Quantum Summit in New York City to bring together scientists to discuss progress in quantum sensors. I'd like to announce that FEI will host a Quantum Summit again this year in October, in particular, on October 29 and 30.

去年，FEI 在紐約市贊助了一場量子高峰會，匯集科學家共同探討量子感測器的進展。我想宣布，FEI 將於今年 10 月再次舉辦量子高峰會，時間為 10 月 29 日至 30 日。

All in all, I'm happy with our performance, vigilant regarding the changes in Washington and very enthusiastic about our future. Steve?

總而言之，我對我們的表現感到滿意，對華盛頓的變化保持警惕，對我們的未來充滿熱情。史蒂夫？

Thank you, Tom, and good afternoon. For the fiscal year ended April 30, 2025, consolidated revenue was $69.8 million compared to $55.3 million for the same period of the prior fiscal year. The components of revenue are as follows, revenue from commercial and Us government satellite programs was approximately $40.9 million or 59% compared to $23.2 million or 42% in the same period of the prior fiscal year. Revenue on satellite payroll contracts are recognized primarily under the percentage of completion method and are recorded only in the FEI-New York segment.

謝謝你，湯姆，下午好。截至 2025 年 4 月 30 日的財政年度，綜合收入為 6,980 萬美元，而上一財政年度同期為 5,530 萬美元。收入組成如下，來自商業和美國政府衛星計畫的收入約為 4,090 萬美元或 59%，而上一財年同期為 2,320 萬美元或 42%。衛星工資合約的收入主要按照完工百分比法確認，並且僅記錄在 FEI-紐約部門。

Revenues from non-space US government and DOD customers, which are recorded in both the FEI-New York and FEI-Zyper segments, were $26.5 million compared to $29 million in the same period of the prior fiscal year and accounted for approximately 38% of consolidated revenue compared to 52% for the prior fiscal year.

來自非太空美國政府和國防部客戶的收入（記錄在 FEI-New York 和 FEI-Zyper 部門）為 2,650 萬美元，而上一財年同期為 2,900 萬美元，約佔合併收入的 38%，而上一財年為 52%。

Other commercial and industrial revenue was $2.4 million and $3.1 million for the fiscal year ended April 30, '25 and '24, respectively. The company is encouraged by significant revenue growth compared to the prior fiscal year. The majority of the increase in revenue from fiscal year '25 as compared to fiscal year '24 was a result of increase in sales in US government DoD satellite market.

截至 2025 年 4 月 30 日和 2024 年 4 月 30 日的財政年度，其他商業和工業收入分別為 240 萬美元和 310 萬美元。與上一財年相比，該公司的收入大幅成長，令該公司感到鼓舞。與 24 財年相比，25 財年營收的成長大部分源自於美國政府國防部衛星市場的銷售額成長。

For the fiscal year ending April 30, 2025, the gross profit and gross profit percentage increased as a result of several factors, the increase in gross profit dollars was directly related to the significant increase in revenue over the prior fiscal year period as well as the increase in gross margin. The majority of the increase in the gross profit percentage as compared to the prior fiscal year was in the FEI New York segment and was attributable to the company's performance on several traditional space programs at higher margin and ahead of schedule. In addition, the company has new programs that are progressing well, and the company anticipates they will generate additional revenue and profits.

截至 2025 年 4 月 30 日的財政年度，毛利和毛利百分比由於多種因素而增加，毛利的增加與上一財年收入的大幅增加以及毛利率的增加直接相關。與上一財年相比，毛利潤率的成長主要來自 FEI 紐約分部，這歸因於該公司在幾個傳統太空項目上的業績，這些項目的利潤率更高，並且提前完成了計劃。此外，該公司還有一些新項目正在順利推進，預計這些項目將產生額外的收入和利潤。

In the fiscal year ending April 30, '25 and '24, selling and administrative expenses were 8% of consolidated revenue in both periods. While total SG&A expense increased in fiscal year '25 as compared to the prior fiscal year, SG&A expense remained constant as a percentage of revenue in fiscal year '25. The approximately $2.1 million increase is made up of mainly payroll-related items such as 401(k) expense, stock option expense, bonus accrual, in addition to these expenses, trade show and related costs also increased during the fiscal year '25.

在截至 2025 年 4 月 30 日和 2024 年 4 月 30 日的財政年度中，銷售和管理費用佔兩個期間合併收入的 8%。儘管 25 財年的銷售、一般及行政費用總額與上一財年相比有所增加，但 25 財年的銷售、一般及行政費用佔收入的百分比保持不變。約 210 萬美元的增幅主要由與工資相關的項目組成，例如 401（k）費用、股票選擇權費用、獎金應計，除了這些費用之外，25 財年貿易展和相關費用也有所增加。

R&D expense for the fiscal year ending April 30, '25 increased $6.1 million from $3.4 million, an increase of $2.7 million and were approximately 9% and 6%, respectively, of consolidated revenue. The company funded R&D amounts was higher in fiscal year '25 as compared to previous fiscal year, partially because of the previous fiscal year, R&D expenditures were lower than planned and some of the expense were subsequently captured in fiscal year '25. The increase in R&D expense also reflects the company's commitment to maintain its technical excellence. The company expects future R&D investment to be in line with or even potentially above historical spending.

截至 25 年 4 月 30 日的財政年度的研發費用從 340 萬美元增加了 610 萬美元，增加了 270 萬美元，分別佔合併收入的約 9% 和 6%。公司在 25 財年的研發資助金額與上一財年相比有所增加，部分原因是上一財年的研發支出低於計劃，部分費用隨後在 25 財年被計入。研發費用的增加也反映了公司保持技術優勢的決心。該公司預計未來的研發投入將與歷史支出持平，甚至可能高於歷史支出。

For the fiscal year ending April 30, '25, the company recorded operating income of $11.7 million compared to an operating income of $5 million in the prior fiscal year. The increase is mainly attributable to the company's significant increase in revenue and gross margin during fiscal year '25 as noted above from traditional space programs that have been executed ahead of schedule, well within budget and technologically performed well.

截至 2025 年 4 月 30 日的財政年度，該公司的營業收入為 1,170 萬美元，而上一財政年度的營業收入為 500 萬美元。成長主要歸因於公司 25 財年收入和毛利率的大幅成長，如上所述，這些成長得益於提前完成、在預算之內且技術表現良好的傳統太空計畫。

The positive effect of cost-cutting measures instituted by management have also contributed to the increase. The change in other income expense from prior fiscal year was relatively minimal. All three categories presented were slightly lower in fiscal year '25 compared to prior fiscal year. This yields pretax income of approximately $12.1 million compared to $5.5 million for the prior fiscal year.

管理階層採取的削減成本措施的正面效果也促進了這一成長。與上一財年相比，其他收入支出的變化相對較小。與上一財年相比，25 財年的所有三個類別均略有下降。這產生了約 1,210 萬美元的稅前收入，而上一財年為 550 萬美元。

For the fiscal year ending April 30, '25, the valuation allowance decreased by approximately $13.9 million from the prior fiscal year primarily due releasing the majority of the valuation allowance recorded against deferred tax assets. This change in estimate occurred in the third quarter of fiscal '25.

截至 2025 年 4 月 30 日的財政年度，估值準備金較上一財政年度減少約 1,390 萬美元，主要原因是釋放了針對遞延稅項資產記錄的大部分估值準備金。這項估計變化發生在 25 財年第三季。

Consolidated net income for the year ending April 30, '25 was $23.7 million or $2.46 per share compared to $5.6 million or $0.59 per share in the previous fiscal year. Our fully funded backlog at the end of April '25 was approximately $70 million compared to $78 million for the previous fiscal year, April 30, '24. The company's balance sheet continues to reflect strong working capital position of approximately $30 million at April 30, '25 and a current ratio of approximately 2.3:1. Additionally, the company is debt free.

截至 25 年 4 月 30 日的年度綜合淨收入為 2,370 萬美元或每股 2.46 美元，而上一財年為 560 萬美元或每股 0.59 美元。截至 2025 年 4 月底，我們的全額資助積壓訂單約為 7,000 萬美元，而上一財年（2024 年 4 月 30 日）的積壓訂單為 7,800 萬美元。該公司的資產負債表繼續反映出強勁的營運資本狀況，截至2025年4月30日約為3000萬美元，流動比率約為2.3:1。此外，公司沒有負債。

Cash went down by approximately $13.6 million since prior fiscal year-end. Of this decrease, the dividend paid in Q2 of fiscal '25 accounted for approximately $9.6 million of the additional $4 million decrease was related to timing of billing and revenue. Contract liabilities went down $8.2 million since year-end. Contract liabilities are generated as part of 606 accounting when the billings are in excess of revenue taken on specific programs. We expect that cash will fluctuate quarter-to-quarter. However, we expect its trend to be higher over time. The company believes that its liquidity is adequate to meet its operating and investing needs for the next 12 months in the foreseeable future.

自上一財年末以來，現金減少了約 1,360 萬美元。在這一減少中，25 財年第二季支付的股息約佔 960 萬美元，另外 400 萬美元的減少與帳單和收入的時間有關。自年底以來，合約負債減少了 820 萬美元。當帳單金額超過特定項目的收入時，合約負債將作為 606 會計的一部分產生。我們預計現金將逐季度波動。然而，我們預計其趨勢會隨著時間的推移而走高。公司認為其流動性足以滿足可預見的未來12個月的營運和投資需求。

I will turn the call back to Tom, and we look forward to your questions shortly.

我會將電話轉回給湯姆，我們期待您的提問。

Thanks, Steve. We're now ready for questions.

謝謝，史蒂夫。我們現在準備好回答問題了。

(Operator Instructions)

（操作員指示）

Brett Reiss, Janney Montgomery Scott

布雷特·雷斯，詹妮·蒙哥馬利·斯科特

Hi, Tom. Hi Steve. Can you guys hear me?

你好，湯姆。你好，史蒂夫。你們聽得到我說話嗎？

Yes.

是的。

Great. Nice quarter, great end of the year. Tom, you rattled off a number of growth potential areas, the Golden Dome, the APMT, resilient GPS. Can you walk me through the processes to how you will allocate corporate time and resources to these various growth opportunities?

偉大的。美好的一個季度，美好的一年的結束。湯姆，你列舉了許多具有成長潛力的領域，如金頂、APMT、彈性 GPS。您能否向我介紹如何將公司時間和資源分配給這些不同的成長機會？

Well, I'm not quite sure how to answer that question. We're actively pursuing proposals at this time. That result in all of those areas. And I think we have ongoing discussions with all our prime customers about these topics as we go and what our capabilities are in this arena.

嗯，我不太確定該如何回答這個問題。我們目前正在積極尋求提案。這導致了所有這些領域。我認為我們正在與所有主要客戶就這些主題以及我們在這個領域的能力進行持續討論。

Tom, I apologize, I didn't ask the question right -- in the right way. Of the five or six areas you mentioned, which one do you think has the greatest potential that might lead to a greater allocation of corporate resources and attention?

湯姆，我很抱歉，我沒有以正確的方式提出問題。在您提到的五、六個領域中，您認為哪一個領域最有潛力，能夠引導企業更多地配置資源和關注？

Okay. I see. Well, that's a little hard to say also. I think the -- at the moment, I think the quantum sensor area looks quite promising. We know that GPS is vulnerable and the magnetometer activity that we're working on certainly looks very promising, and there's a huge addressable market there in terms of providing alternative to GPS navigation, especially, I think, in commercial aircraft. So that's certainly a big one. But I think Golden Dome looks like a big thing also, but it's a little bit ambiguous as to how the funding is going to happen on that one. So we'll just have to see.

好的。我懂了。嗯，這也有點難說。我認為——目前，量子感測器領域看起來相當有前景。我們知道 GPS 存在漏洞，而我們正在進行的磁力儀活動看起來前景非常廣闊，在提供 GPS 導航替代方案方面有著巨大的潛在市場，尤其是在商用飛機領域。所以這確實是一個大問題。但我認為金色穹頂看起來也是一件大事，但它的資金來源有點模糊。所以我們只能拭目以待。

All right. Last one for me. Because of these tremendous growth opportunities, R&D spend is going to move up. We've got a strong balance sheet, but do we have enough cash to fund this greater amounts of R&D that's needed to take advantage of these opportunities?

好的。對我來說是最後一個。由於這些巨大的成長機會，研發支出將會增加。我們的資產負債表很強勁，但我們是否有足夠的現金來資助利用這些機會所需的大量研發？

At this point in time, we are confident that we have adequate cash in order to fund that. As I stated in the press release, it's really a targeted use of internal funds. I think we're being somewhat cautious and careful about just what we spend our resources on. And I think we're in a pretty good position to do that and to continue doing that going forward. But we'll keep an eye on that and have to evaluate that in the future. There are a lot of external funding things that we see and we're working on obtaining. And I think that supplements our use of internal funds significantly.

目前，我們有信心擁有足夠的現金來支持這項計畫。正如我在新聞稿中所說，這實際上是有針對性地使用內部資金。我認為我們在資源的投入上要謹慎小心。我認為我們處於非常有利的位置來做到這一點，並將繼續這樣做。但我們會密切關注此事，並在未來進行評估。我們看到很多外部資金，我們正在努力爭取。我認為這極大地補充了我們對內部資金的使用。

Great. Thank you for taking my questions and enjoy the rest of the summer.

偉大的。感謝您回答我的問題並祝您度過愉快的夏天。

Okay, thank you.

好的，謝謝。

(Operator Instructions)

（操作員指示）

[Chris Petrosky], a Private Investor.

[Chris Petrosky]，一位私人投資者。

Hello. Congratulations on great results. You mentioned -- sure, you mentioned in your press release that there might be some short-term uncertainty. Can you elaborate on that?

你好。恭喜您取得優異的成績。您提到—當然，您在新聞稿中提到可能會存在一些短期不確定性。能詳細說明一下嗎？

Well, I'm not sure uncertainty is a right way to refer to it. I think that there will be some variability in the timing of contracts, I think, is really what we're talking about, and we've already seen this, the new administration is intent on making their mark on things. So the timing of a lot of programs that are already in the works are changing. And we just -- we have to deal with that, obviously. So I think it's very clear that overall, there -- the administration is intent on spending even more money on the things that are in our area of expertise.

嗯，我不確定「不確定性」是否是一種正確的說法。我認為合約的時間會有一些變化，我認為這就是我們真正在談論的，我們已經看到這一點，新政府決心在一些事情上留下自己的印記。因此，許多已在進行中的項目的時間安排正在發生變化。顯然，我們必須處理這個問題。所以我認為總體來說很明顯，政府打算在我們的專業領域投入更多的資金。

But they're going to not necessarily spend them in the same way that was imagined prior to this administration. So this is the thing we just have to roll with the punches in terms of how the timing of these things plays out.

但他們不一定會按照本屆政府之前設想的方式花錢。因此，就這些事情發生的時間而言，我們必須隨機應變。

Okay. And you're absolutely right. You did not use the term uncertainty, you use term variability, which is what I should have said. Okay. So does that include the variability in timing? Does that include stuff that's already into in your $70 million backlog?

好的。你說得完全正確。您沒有使用“不確定性”這個術語，而是使用了“可變性”這個術語，這正是我應該說的。好的。那麼這是否包括時間的變化？這是否包括您已在 7000 萬美元積壓訂單中的內容？

I'm not quite sure I understand the question.

我不太確定我是否理解了這個問題。

So the variability issues you mentioned would those include projects that are already in your $70 million backlog? Or is it?

那麼，您提到的可變性問題是否包括已經在 7000 萬美元積壓中的項目？或者是嗎？

No, no. Not really. The -- we don't anticipate any variability in the backlog. The only thing I would say is that contracts can be terminated. We don't anticipate that with anything in our backlog at this point in time. But that certainly has happened. So I guess in that sense, there's the potential for variability. But the backlog is pretty solid. I think it's with future work that we have to look at the variability and the timing of when things occur.

不，不。並不真地。我們預計積壓訂單不會有任何變化。我唯一想說的是合約可以終止。目前我們預計我們的積壓工作中不會發生這種情況。但這確實發生了。所以我想從這個意義上來說，存在著變化的可能性。但積壓的訂單相當多。我認為在未來的工作中我們必須考慮事情發生的變化和時間。

All right. So you think there'll be -- with future contracts, there will be some variability in the short term. But in the medium term, you will see certain kind of relative certainty for higher growth. Now what that -- could you just tell me roughly what do you mean by short term, midterm?

好的。所以你認為未來的合約在短期內會出現一些變化。但從中期來看，你會看到更高成長的某種相對確定性。現在那是什麼——你能大致告訴我短期、中期是什麼意思嗎？

I think short term, we're really talking about the next year or so. And medium term, I think we're looking at two to five years long term, beyond the five-year point.

我認為短期內，我們實際上談論的是明年左右。從中期來看，我認為我們著眼於兩到五年的長期目標，超越五年。

All right. And I had a question about Quantum. Right now, it seems that we're not yet -- the point where commercial quantum systems are coming out, but a lot of money is going into research. Would you say that this research stage because you probably -- your timers are probably needed for the research stage as well. What you said this research stage is enough to make kind of like a notable revenue.

好的。我有一個關於 Quantum 的問題。目前看來，我們還沒有達到商業量子系統問世的階段，但是大量的資金已經投入研究。您是否會說這個研究階段是因為您可能—您的計時器也可能需要用於研究階段。您所說的這個研究階段足以帶來可觀的收入。

Yes. There's, I think, significant revenue from the research stage, it might better be characterized as development as opposed to research because I think the science is well understood in these areas is really developing products based on that science that we're working on. And to the extent that this development is externally funded, it certainly generates revenue and indeed profit. So yeah, I hope that answers your question.

是的。我認為，研究階段可以獲得大量收入，它可能被更好地描述為開發而不是研究，因為我認為這些領域的科學已經得到了很好的理解，我們實際上正在根據正在研究的科學開發產品。如果這項開發案得到外部資助，它肯定會產生收入，甚至利潤。是的，我希望這能回答你的問題。

Yeah. Oh, yes, definitely it does. And would you expect to do have -- I mean, would you expect to get externally funded revenue? Or would your clients be kind of asking you to do some of development on your own income statement as well?

是的。噢，是的，確實如此。您是否期望獲得 - 我的意思是，您是否期望獲得外部資助的收入？或者您的客戶也會要求您對自己的損益表做一些改進？

Well, that's a really good question. I think in some cases, the funding agencies aren't -- don't have enough money to support all of the work that needs to be done. And so we supplement that with internal funding. But I think that's usually a pretty small amount of the total funding that is to be had. So it's a relatively small thing and that I think we account for in our budget for internal R&D funding on an annual basis. That is going up a little bit, but just a little bit in order to support these new technologies and things.

嗯，這是一個非常好的問題。我認為在某些情況下，資助機構沒有足夠的資金來支持所有需要完成的工作。因此我們用內部資金來補充。但我認為這通常只佔總資金的一小部分。所以這是一件相對較小的事情，我認為我們每年都會將其計入內部研發資金預算中。這個數字會略有上升，但只是為了支持這些新技術和新事物而上升的一點點。

Okay. It's good to hear it a small amount. Well, this is all for me. Good luck again, and congratulations again.

好的。聽到少量就很好了。好吧，對我來說這就是全部了。再次祝你好運，再次恭喜你。

Okay, thank you.

好的，謝謝。

(Operator Instructions)

（操作員指示）

Michael Eisner, Michael is a private investor.

麥可艾斯納，麥可是一位私人投資者。

Hi, how are you? You start working on the Leidos and linking labs yet?

你好你好嗎？您開始研究 Leidos 和連結實驗室了嗎？

Yes.

是的。

Who's paying for that R&D for that?

誰來支付這項研發的費用？

So we're funded by Leidos at this point in time.

因此我們目前由 Leidos 資助。

Are you paying for it?

你要付錢嗎？

I'm not sure I understand the question. Go ahead.

我不確定我是否理解了這個問題。前進。

You have to do R&D on that? Is there already proving?

你必須對此進行研發嗎？已經有證據了嗎？

Well, the development, this is development activity, and that is primarily funded by Leidos. Just like the last question, there's a small amount of internal funding that supplements that. But that's primarily.

嗯，開發，這是開發活動，主要由 Leidos 資助。就像上一個問題一樣，有少量內部資金可以補充這一點。但那隻是主要的。

We get to keep the technology also, right?

我們也可以保留這項技術，對嗎？

Yes.

是的。

And is GPS IIIF back in play, I thought was over with a while ago, I heard something about that.

GPS IIIF 是否又開始發揮作用了？我以為它不久前就結束了，我聽到了一些關於它的消息。

No. No, that's not true. GPS IIIF is indeed very active. And in fact, we're currently delivering products for the GPS IIIF program.

不。不，事實並非如此。GPS IIIF 確實非常活躍。事實上，我們目前正在為 GPS IIIF 計劃提供產品。

Which would launch all up to now?

哪一個會啟動迄今為止的一切？

Well, I don't think -- so there are -- there's GPS III, and there's GPS IIIF I think, is follow-on. So the current launches, the last launch that occurred was a GPS III launch. And I believe it was the eighth GPS III satellite. I'm not much

嗯，我不這麼認為——所以有——有 GPS III，還有 GPS IIIF，我認為，是後續產品。因此，目前的發射中，最後一次發射是 GPS III 發射。我相信這是第八顆 GPS III 衛星。我不太

Yeah, I remember that.

是的，我記得。

Yeah. So there are still additional GPS satellites to launch, I think, 9 and 10, in particular, and GPS IIIF starts with number 11. So no GPS IIIF satellites have launched yet.

是的。因此，我認為還有更多的 GPS 衛星需要發射，特別是 9 號和 10 號，而 GPS IIIF 將從 11 號開始。因此尚未發射任何 GPS IIIF 衛星。

But they will eventually. That $12 million contract that you just announced, was that a continuation from the previous contract?

但他們最終會的。您剛剛宣布的 1200 萬美元合約是上一份合約的延續嗎？

Yes.

是的。

For November of 2023.

2023 年 11 月。

I don't remember exactly. Yeah. No, it was not a continuation of those contracts. It was separate.

我記不太清楚了。是的。不，這不是那些合約的延續。它是分開的。

All right. And you mentioned that -- how far into the magnetic navigation so we don't get spoofed and even jammed up?

好的。您曾提過－磁導航要深入到什麼程度才不會被欺騙甚至幹擾？

Well, we're actively pursuing it. I think our development activity is basically a two-year program. And we should have prototype demonstrations at the end of that period.

嗯，我們正在積極追求它。我認為我們的開發活動基本上是一個兩年計畫。我們應該在該階段結束時進行原型演示。

All right. We're the only one that do vertically into only company that's vertically integrated to produce all the stuff from beginning to end?

好的。我們是唯一一家垂直整合生產所有產品的公司，從頭到尾都進行垂直整合？

Well, I don't know that I can say we're the only company that's vertically integrated. But I think it is indeed true that we are vertically integrated and and as I've said before, I think we feel strongly that, that's key to our continued success because it allows us to control. We're working in technology areas that are fairly esoteric.

嗯，我不知道是否可以說我們是唯一一家垂直整合的公司。但我認為我們確實是垂直整合的，而且正如我之前所說，我強烈感覺到，這是我們持續成功的關鍵，因為它使我們能夠控制。我們所從事的技術領域相當深奧。

And if we rely on other suppliers to provide key ingredients, then we lose control of those key ingredients, and it's hard to get the kind of performance that's required in these areas. So we do feel it's key. I think it is a differentiator. There are not so many companies out there that are vertically integrated in the way that we are, but I'd hesitate to say that we have a monopoly on that.

如果我們依賴其他供應商提供關鍵成分，那麼我們就會失去對這些關鍵成分的控制，並且很難獲得這些領域所需的效能。所以我們確實覺得這是關鍵。我認為這是一個區別因素。像我們這樣進行垂直整合的公司不多，但我不敢說我們在這方面擁有壟斷地位。

Does microchip, can they do it? We're really not sure, microchip.

微晶片他們能做到嗎？我們真的不確定，微晶片。

Microchip, I don't think so, no.

微晶片，我不這麼認為，不是。

That's good for us. All right. Good job. That's it for me.

這對我們有好處。好的。好工作。對我來說就是這樣。

Okay, thanks, Michael.

好的，謝謝，麥可。

Thank you.

謝謝。

George Marema, Pareto Ventures.

喬治‧馬雷瑪，帕累托創投公司。

Hey Tom, thanks for taking my questions. The first one was on gross margin this quarter was a little bit down. Can you sort of outline the reasons why?

嘿，湯姆，謝謝你回答我的問題。第一個是本季的毛利率略有下降。您能概括一下原因嗎？

I don't think there's anything super significant. I think there's just a general lumpiness from quarter-to-quarter on how things play out. I think we're pretty comfortable with where the gross margin is overall.

我認為沒有什麼特別重大的事。我認為，各季度的情況總體上存在差異。我認為我們對整體毛利率相當滿意。

As you look out into next -- into this current coming fiscal year, for '25, you're on a 43% gross margin for the year and 37% in this last quarter. Would you be sort of targeting the high 30s or more low 40s for this coming year?

展望下一個財年－即將到來的 25 財年，全年毛利率為 43%，上一季為 37%。今年的目標會是 30 多歲還是 40 多歲呢？

Well, I think we're targeting 40% or more and where we end up, we'll see. I think that's -- we're trying to maintain a very disciplined approach in terms of our margins. And so yeah, that's where we're aiming and -- but we have to see the timing of things, et cetera, always comes into play

嗯，我認為我們的目標是 40% 或更多，至於最終結果如何，我們拭目以待。我認為——我們正試圖在利潤率方面保持非常嚴謹的態度。是的，這就是我們的目標——但我們必須看到事情的時機等等，這些都會發揮作用

Okay. And then on quantum sensing, could you sort of characterize or size up a little bit for this coming fiscal year, what kind of development like revenue opportunity is there? Is it material like 10% of your business or less or more than that? And then secondly, when would you hope to have product revenue out of this area. How far off?

好的。然後，關於量子感測，您能否對即將到來的財政年度進行一些描述或評估，有什麼樣的發展機會？它是否佔您業務的 10% 或更多或更少？其次，您希望何時從該領域獲得產品收入。有多遠？

So I think it's -- at this next fiscal year, I would anticipate that it's less than [10%] of our overall revenue, number one. And number two, I anticipate the products sort of five years out from now, I think that's a reasonable expectation.

所以我認為——在下一個財政年度，我預計它將不到我們總收入的 [10%]，這是第一。第二，我預計這些產品將在五年後上市，我認為這是一個合理的期望。

Okay. And then are any of the other newer products coming up before then, these other things you mentioned?

好的。那麼在此之前還有其他新產品推出嗎，您提到的這些其他產品呢？

Definitely. We have products which are going to be available within the next fiscal year. the compact rubidium standard is going to be available, and yeah.

確實。我們的產品將在下一個財政年度內上市。緊湊型銣標準即將上市，是的。

Is that the turbo you're talking about?

你說的是渦輪增壓器嗎？

Yes.

是的。

They'll be out in this fiscal year, you hope this product?

您希望他們在本財年推出這款產品嗎？

It will, yes.

是的，會的。

What kind of addressable market is that, if you can kind of size that up or characterize it?

如果您可以對其規模或特徵進行評估或描述，那麼這是一個什麼樣的潛在市場？

Well, it's a growing addressable market. I think probably $1 million to $2 million within the next year or so and growing after that.

嗯，這是一個不斷成長的潛在市場。我認為未來一年左右可能會達到 100 萬到 200 萬美元，之後還會繼續成長。

Okay, thank you ,Tom.

好的，謝謝你，湯姆。

Brent Garrison. Private Investor

布倫特·加里森。私人投資者

Hi, Tom, thank you for your leadership, and thanks to all the employees for their hard work, much appreciated. My question is, what do you target for SG&A and R&D for 2026 going forward as a percentage of revenue?

你好，湯姆，謝謝你的領導，也感謝所有員工的辛勤工作，非常感謝。我的問題是，您計劃將 2026 年的銷售、一般及行政費用和研發費用佔收入的百分比定為多少？

I'll let Steve respond to that question.

我讓史蒂夫來回答這個問題。

I believe they'll be very similar to where they are this year. Approximately SG&A, we ran 18% for the last two years and R&D somewhere in the 6% to 8% or 9% range.

我相信它們的情況會與今年非常相似。約而言，過去兩年我們的銷售、一般及行政費用佔比為 18%，研發費用佔 6% 至 8% 或 9% 左右。

And do you target taxes? I mean, I know you had -- you didn't have any more carryforwards, but you had some -- a few more NOLs left. Do you still see taxes in the 1.5% to 2% range?

您是否針對稅務？我的意思是，我知道您沒有更多的結轉，但您還有一些 NOL。您是否仍看到稅率在 1.5% 至 2% 的範圍內？

Again, depending, I think, for next year, we'll use more NOLs. We still have a bunch left, but with the new tax law changes and stuff and California is where right now, we pay our taxes because they suspended the use of NOLs. I still believe if we have a good year, it's still -- the majority of it will be covered. Some may not based on where it comes and so forth. But it will not be a normal 21% tax year next year either.

再次，我認為，明年我們將使用更多的 NOL。我們還剩下很多，但隨著新稅法的變化和其它事情，以及加州現在的情況，我們繳納稅款，因為他們暫停了使用 NOL。我仍然相信，如果我們有一個好年景，它仍然——大部分都會被覆蓋。有些可能不取決於它的來源等等。但明年也不會是一個正常的21%的稅務年度。

Do you still feel it's in the single digits?

您還覺得它是個位數嗎？

Yes.

是的。

Okay. Last quarter, you spoke about FDA bids. Were any of those successful? And what kind of investment expense do you see coming from FDA?

好的。上個季度，您談到了 FDA 的競標。其中有任何成功嗎？您認為 FDA 的投資費用是多少？

So at this point in time, that's a little bit up in the air, actually, the new administration is rethinking the SDA process. We are still looking at tracking layer activity from SDA, but the transport or data layer is currently being reimagined and how that's going to play out is not clear at this point in time.

因此，目前這還有點懸而未決，實際上，新政府正在重新考慮 SDA 流程。我們仍在關注 SDA 的追蹤層活動，但傳輸或資料層目前正在重新構想，目前尚不清楚它將如何發揮作用。

There's no indication of even maybe a time frame. I know earlier you mentioned short and medium term to be one to five years or 1one to two years, do you personally think that it's somewhere in the -- within the next 9 to 12 months?

甚至可能沒有任何跡象表明時間框架。我知道您之前提到短期和中期是一到五年或一到兩年，您個人認為是在未來 9 到 12 個月內嗎？

Definitely. I think yes, yes. I think something is going to pop within that time frame, yeah.

確實。我認為是的，是的。是的，我認為在那個時間範圍內會發生一些事情。

Okay. All right, I'll back out. Thank you for your time.

好的。好吧，我退。感謝您抽出時間。

Okay, thanks.

好的，謝謝。

And there were no other questions from the lines at this time. I will now hand the call back to Thomas McClelland for closing remarks.

此時，電話那頭還沒有其他問題。現在我將把電話交還給托馬斯·麥克萊蘭，請他作最後發言。

Okay. I think I'd like to thank everybody for participating in this call, and have a nice summer. Thank you

好的。我想我要感謝大家參加這次電話會議，並祝大家有個愉快的夏天。謝謝

Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束。現在您可以斷開線路。感謝您的參與。